A Rug-Pull Is Often The Way The Scammer Cuts Off The Victim & Disappears

In financial fraud, a “rug-pull” refers to a deceptive tactic commonly associated with cryptocurrency projects, particularly decentralized finance (DeFi) platforms. A rug-pull occurs when the creators or developers of a project suddenly and intentionally drain the funds or liquidity from the project, leaving investors with worthless or significantly devalued tokens or assets.

However, a rug-pull also happens in Ponzi schemes, lotto scams, romance scams, and any other scam where the scammer can grab the money and run.

Rug-Pull

The term “rug-pull” draws its analogy from the act of pulling a rug out from under someone’s feet, causing them to lose balance and fall. Similarly, in the context of cryptocurrency projects, a rug-pull involves the sudden removal of liquidity or misappropriation of funds, causing investors to suffer substantial financial losses.

Scammers may entice crypto investors by promoting a project, promising high returns or innovative features. However, once a significant amount of investment has been made and the fake project gains traction, the scammers execute the rug-pull by swiftly draining the project’s funds, often leaving investors with no recourse to recover their investments.

This also happens in 419 Advance Fee Fraud as well!

Why Don’t We Call These A Rug-Pull Scam?

Here is a way to think about it. A scam is an overall collection of stories that make it convincing to the victim under the broad category of “Long Cons”. The tactics or techniques are the various processes or mechanics or techniques used during the execution of that narrative for grooming, manipulation, control, and harvesting.

In that context, a rug-pull is a harvesting technique or tactic used to secure the money already stolen and to cut off the victim and obscure the criminals. Variations even hapen in grandparent scams once the money is paid the scammers go silent leaving the family members guessing what ultimately happened to their grandchild, etc.

See what I mean? Think overall process, not individual action. In the case of a romance scam, people often call the way the money is sent as the scam, but it is just a part of the process, part of the mechanics – such as gift card scams or wire transfer scams. Even APP fraud is really not a scam, just a tactic – a part of the overall relationship scam.

Take a bank robbery for example. Do we call them “Teller Note Crimes”? That is a tactic they use, but that is not the overall crime, it is bank robbery.

Ghosting vs. Rug-Pull

In relationship scams, “ghosting” refers to a tactic employed by scammers to abruptly cut off all communication with their victims, effectively disappearing without any explanation or trace – a rug-pull. It involves the scammer ceasing all contact, blocking the victim, and leaving them bewildered and often emotionally distraught.

Ghosting is a manipulative technique used by scammers to further exploit their victims emotionally (and for the scammer/criminal to make a clean getaway.) Initially, scammers build a connection and establish a romantic relationship with their targets. They invest time and effort into cultivating a bond, gaining the trust and affection of the victim.

However, once the scammer has achieved their objective, such as extracting money or personal information, they execute the ghosting tactic (a rug-pull.) They vanish suddenly and sever all contact, leaving the victim confused, hurt, and unable to reach out for clarification or closure. This abrupt and unexplained disappearance is designed to prevent the victim from realizing the truth and potentially seeking help or taking legal action.

Ghosting in relationship scams can have devastating psychological and emotional effects on the victims. They are left feeling betrayed, abandoned, and often blaming themselves for the sudden end of the relationship. The emotional impact can be particularly severe if the victim had developed strong feelings and invested significant time and emotions into the relationship.

It is important to note that ghosting can occur in legitimate relationships as well, where one party decides to end the connection without explanation or warning. However, in the context of relationship scams, ghosting is a deliberate strategy employed by scammers to exploit vulnerable individuals and escape accountability for their fraudulent actions.

To protect oneself from falling victim to relationship scams and experiencing ghosting, it is crucial to exercise caution and be vigilant. Being aware of common signs of scams, such as requests for money or personal information, inconsistencies in the scammer’s story, and avoiding revealing too much personal information too quickly, can help individuals identify potential red flags early on. Additionally, seeking advice from trusted friends or family members and conducting research on the person’s background can provide valuable insights and help avoid falling into a scammer’s trap.

For all intents and purposes, ghosting is the same as a rug-pull.

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